FalconX launches Prime Connect on Deribit

FalconX has announced the launch of Prime Connect, an exchange settlement solution that enables institutional investors to trade on exchanges while their funds remain in bankruptcy-remote, regulated custody.

Besides security, FalconX’s custody is designed to integrate with its suite of prime brokerage services including provision of credit.

Prime Connect is being introduced as an industry-leading solution for clients seeking a secure exchange trading environment along with access to FalconX’s suite of prime services including post-trade settlement, institutional-grade credit, and portfolio margining.

Currently available on Deribit only, FalconX stated that in the coming months, Prime Connect will be launched on other global exchanges, which will be able to tap into a network of premier institutional traders seeking these benefits.

Execution and stable credit lines coupled with portfolio margining

FalconX’s Prime Connect aims to address the issue of institutional investors holding capital on exchanges and managing risk at an exchange level, limiting their ability to scale.

By enabling institutional traders to utilize improved execution and stable credit lines coupled with portfolio margining, FalconX’s Prime Connect enhances capital efficiency and risk management but without compromising asset security as client assets remain in custody segregated from both the exchange’s and FalconX’s assets.

Hyperithm is among the institutional trading firms leveraging FalconX’s Prime Connect to trade on Deribit.

Scale digital assets portfolios while trading on exchanges

Vivek Chauhan, Principal Product Manager at FalconX, said: “FalconX’s Prime Connect caters to the critical needs of institutional investors trading in digital assets. We are pleased to launch Prime Connect with Deribit and look forward to providing our full suite of prime services which allow institutions to confidently scale their digital assets portfolios while trading on exchanges.”

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Luuk Strijers, CEO of Deribit, commented: “We are thrilled to be the first exchange that FalconX is partnering with to launch its off-exchange settlement solution. This collaboration marks a significant milestone in providing institutional investors with access to our offering coupled with FalconX’s full suite of prime services that will enhance client trading capabilities and financial flexibility.”

Jonggu Lee, Chief Investment Officer at Hyperithm, commented: “In the fast-paced world of crypto trading, having a reliable partner like FalconX that provides comprehensive market access along with robust credit and portfolio-margining is invaluable. The launch of FalconX’s Prime Connect will mitigate counterparty risk and enhance our operational workflow. We are excited to leverage this platform to its full potential.”

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